Nvidia Stock Nears 8% of S&P 500 as JPMorgan Sees 70% Growth as AI Demand Surges

• Nvidia stock now makes up nearly 8% of the S&P 500, with a market value of about $5.2 trillion
• JPMorgan revealed a roughly 70% growth in FY2028 for Nvidia, while unconstrained growth could exceed 100%
• Nvidia’s Q2 revenue hit $96.2 billion, up 106% year over year, driven by surging AI demand

Nvidia stock has reached a point where its performance goes beyond the chip sector. Its market value is now approaching 8% of the S&P 500, putting the AI leader in rare company. Yet the more intriguing part of the story may be what Nvidia believes is still being missed by investors. JPMorgan has revealed a gap between the company’s official growth outlook and the demand it says it could capture with fewer supply constraints.

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Nvidia Stock Gains Ground as AI Demand Keeps Rising

Nvidia’s market capitalization stood at about $5.2 trillion this week, representing roughly 8% of the S&P 500, according to reports. This makes the company larger than the combined market value of the Energy, Utilities, Real Estate, and Materials sectors.

This scale makes Nvidia stock an increasingly important driver of the market. Nvidia’s stock price jumped 3.2%, helping the S&P 500 recover from a three-day losing streak.

But Nvidia’s valuation is being supported by growth that would be remarkable for a company of almost any size.

JPMorgan Sees Room Beyond Nvidia’s 70% Growth Outlook

Nvidia recently gave investors a first look at its fiscal 2028 revenue framework, pointing to approximately 70% year-over-year growth. This was well above the roughly 45% growth Wall Street had previously expected.

JPMorgan’s work following a meeting with Nvidia’s investor-relations team suggests the forecast may still be conservative. The bank has described the outlook as supply-constrained, with demand running materially higher.

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Nvidia CEO Jensen Huang has said the company’s supply chain is operating flat out and that demand is significantly greater than the 70% growth the company can currently deliver.

The latest numbers show why the company remains so confident. Nvidia reported $96.2 billion in fiscal second-quarter revenue, up 106% from a year earlier, while Data Center revenue reached $89 billion, up 117%.

Meanwhile, the AI infrastructure buildout continues to expand. Huang pointed to enormous future spending on computing capacity.

Nvidia stock investors are thinking about how much higher revenue can go once supply catches up with demand. At a $5 trillion-plus valuation, the market is already expecting a lot. Nvidia’s latest guidance suggests the company believes the AI spending cycle still has more room to run.

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